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From Times Staff and Wire Reports

Profit takers left Wall Street with broad losses Tuesday, sending Nasdaq to its first decline in five sessions.

Meanwhile, a seemingly benign inflation report failed to spark a rally in the bond market, where traders in recent sessions have fretted that inflation pressures might still be growing. Yields closed mostly unchanged and near three-week highs.

On Wall Street, nervousness ahead of some key corporate earnings reports released after trading ended helped drive the Nasdaq composite down 97.50 points, or 2.3%, to 4,177.17.

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The Dow industrials slid 64.35 points, or 0.6%, to 10,739.92. The Standard & Poor’s 600-share small-stock index lost 1.3%.

Trading volume remained moderate at 1.5 billion shares on Nasdaq, while losers topped winners by about 3 to 2.

“We’re getting some profit-taking in the market and that’s about it,” said Richard Dickson, technical analyst at brokerage Scott & Stringfellow in Richmond, Va. “The Nasdaq gained 5.5% last week. The Dow was up every day last week and off just 8 points [Monday]. So the market is just acting a little tired.”

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Major technology stocks were mostly lower, including some that had reported better-than-expected earnings Monday.

Lattice Semiconductor, for example, fell $3.81 to $74.75 even though the chip maker reported earnings well above expectations. Likewise, chip-equipment firm Novellus Systems dropped $5.86 to $62.58 despite sharply higher profit.

Chip stocks in general were hurt by Merrill Lynch investment strategist Richard Bernstein’s comments that investors should lighten up on recently hot chip shares.

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After regular trading ended, two key tech names--Intel and Microsoft--both reported quarterly earnings that beat expectations. Intel had fallen $3.31 to $143 in regular trading and Microsoft had edged up 31 cents to $78.50.

In the bond market, the June consumer prices report failed to motivate buyers. The 10-year Treasury note yield ended at 6.15%, unchanged from Monday.

Some bond traders may have been eyeing the latest surge in oil prices after OPEC backtracked on plans to raise output. Near-term crude futures jumped $1.11 to $31.94 a barrel.

In currency trading, the euro fell to a seven-week low against the dollar, dropping below 93 U.S. cents, as currency traders bet U.S. interest rates may continue to rise, making the dollar more attractive.

Among Tuesday’s highlights:

* Stocks reacting to earnings reports included Merrill Lynch, down $3.72 to $128.25; Charles Schwab, up $1 to $38.25; Philip Morris, up 44 cents to $24.06; GM, up 44 cents to $60.81; and Wells Fargo, down $1.31 to $42.06.

* In the tech sector, Unisys was hammered, falling $3.13 to $11, after saying second-quarter profit fell 52% because of declining revenue from its mainframe businesses.

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* Other tech shares down sharply included Applied Materials, off $5.13 to $88.99; Adobe Systems, down $4.13 to $130.94; and Seagate, which plunged $11.06 to $53.50.

* Many telecom stocks also lost ground, including JDS Uniphase, down $4.50 to $111.31, and Ciena, down $4.06 to $156.94. But Wireless Facilities surged $5.75 to $80.50.

* Many energy stocks rallied with crude oil prices. Murphy Oil jumped $1.94 to $60.88 and Trans-ocean Sedco rose $2.75 to $52.38.

* In the food sector, Keebler Foods jumped $1.31 to $35.38. It said it will explore a number of options for boosting its stock, including the possibility of a merger.

Foreign markets were broadly lower, led by Japan, where the Nikkei-225 index fell nearly 2% despite the Bank of Japan’s decision Monday to hold interest rates near zero.

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Market Roundup: C9-10

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